Hi @Faraz Rai ,
one of the purposes of cloud computing is responsibility for the IT infrastructure.
On-premises the full responsibility for the environment is related to the on-premises organization. They have to take care of any aspect like hardware, storage, power including the case of power outage (power redundancy), cooling including the redundancy, meeting all the required regulatory and compliance requirements (entrance control to the datacenter, ...), security in any aspect.
In cloud computing the cloud provider is taking care for all these aspects.
Another advantage of cloud computing is the way of payment: Basically in cloud computing you are paying for services you are using right now. You can scale up, scale down, add or remove IT services as you need. And you are paying the price for resources you are using not the price what you might use in a few months.
On-premises you have to plan your budget in advance and you have to plan/buy/rent the hardware and you have to consider the scale/sizing upfront.
And a third point is a flexibility/agility to implement IT services on request if needed. On-premises you have to integrate technologies/hardware before you can start. In cloud computing you can implement/run/scale/remove workloads if needed very agil by picking the available cloud computing service at the time you need.
(If the reply was helpful please don't forget to upvote and/or accept as answer, thank you)
Regards
Andreas Baumgarten